In spite of a sizeable gain on the last day of the month, U.S. stocks posted a loss for February. Foreign stock market gains stood out as much recent performance has lagged that of the U.S. Within the U.S. market, mid-cap and small-cap stock losses out-paced large-cap losses. Foreign market gains occurred in both Asia and Europe.
Bond markets performed well in February as overall yields declined. While no near-term changes in policy rates are expected, bond markets seemed to be reacting to some economic measures signaling slower growth.